Major International Business Headlines Brief::: 12 December 2018

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Major International Business Headlines Brief::: 12 December 2018

 


 

 


 <http://www.nedbank.co.zw/> 

 


 

 


 

 

*  Zambia's chamber of mines sees 21,000 job cuts due to higher taxes

*  South Africa's manufacturing output jumps, boosting rand

*  Famous Brand's UK burger chain shuts 14 struggling stores

*  Botswana’s Mowana copper mine suspends operations over working capital

*  Somalia's GDP growth seen expanding to 3.1 pct in 2018 - IMF

*  Liquid Telecom gets $180 million from UK for pan-African fibre network

*  Miner Anglo American sees higher production between 2018 and 2021

*  Tunisia central bank holds key interest rate at 6.75 pct

*  South Africa needs to bail out Eskom, says former Eskom adviser Rothschild

*  France 'Gilets Jaunes': Spending cuts to fund Macron concessions

*  India appoints new central bank governor

*  China to 'cut US car tariff to 15%'

*  Is the US heading for a recession?

*  Meng Wanzhou: Trump could intervene in case of Huawei executive

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

                                      

Zambia's chamber of mines sees 21,000 job cuts due to higher taxes

LUSAKA (Reuters) - Mining companies in Zambia may lay off more than 21,000 workers due to reduced capital expenditure over the next three years if the government introduces higher taxes in January, an industry body said on Tuesday.

 

Africa’s No.2 copper producer plans to introduce new mining duties, replace Value Added Tax with sales tax and increase royalties to help bring down mounting debt.

 

The Chamber of Mines said it met officials at the ministry of finance last week to present its views on the likely impact of the tax changes contained in the 2019 budget, which include capital expenditure cutbacks of more than $500 million.

 

“Our members continue to review their operations and are having to consider scaling back substantially while reducing capital expenditure by over a half billion dollars over the next three years,” chamber of mines spokesman Talent Ng’andwe said by email in response to questions by Reuters.

 

“Consequently, reductions of over seven thousand direct jobs and more than double this number of indirect jobs would result.”

 

Presidential spokesman Amos Chanda said the minister of finance had informed the presidency that she would proceed with the implementation of the new taxes in January.

 

“The minister has told us that mining companies are trying to employ arm-twisting tactics but no single sector is immune from our taxation system,” Chanda said.

 

“Mining companies have no right to impose their proposal on the government. As far as the minister of finance is concerned, this is a fair tax system,” he said.

 

In its 2019 budget, the government announced plans to increase the country’s sliding scale for royalties of 4 to 6 percent by 1.5 percentage points and introduce a new 10 percent tax when the price of copper exceeds $7,500 per tonne.

 

The chamber proposed that the sliding scale royalty rate be increased by 0.5 percent and the royalty rate should be 7.5 percent when copper prices exceed $7,500 per tonne, Ng’andwe said.

 

Mining accounts for more than 70 percent of Zambia’s foreign exchange earnings and companies operating in the southern African nation include First Quantum Minerals, Barrick Gold Corp, Glencore and Vedanta Resources.

 

Zambia has said it is committed to improving the transparency of its debt management and will ensure that debt levels remain sustainable.

 

The International Monetary Fund rejected Zambia’s borrowing plans earlier this year and said the country was at high risk of debt distress, unnerving investors holding Zambian debt.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

South Africa's manufacturing output jumps, boosting rand

JOHANNESBURG (Reuters) - South Africa’s manufacturing output rose more than expected in October to its highest level since June 2016, data showed on Tuesday, lifting the rand as the economy showed further signs of recovering from recession.

 

Africa’s most industrialised economy slipped into recession after contractions in the first two quarters of the year, but bounced back strongly in the third as the manufacturing, agriculture and retail sales sectors grew.

 

Manufacturing output rose by 3 percent year-on-year in October, driven by better vehicle and metals production, the statistics agency said.

 

The rand added to its earlier gains, advancing to 14.3450 per dollar from 14.40 just prior to the data’s release.

 

Motor vehicles, parts and accessories rose 14 percent, food and beverages was up 6 percent, while basic iron and steel product grew 3.2 percent.

 

Mining data earlier showed the output in the ailing industry had stabilised slightly, rising 0.5 percent year-on-year in the month.

 

Manufacturing accounts for 14 percent of gross domestic product and mining 8 percent. Both have been drivers of a primary sector slump blamed on low business and consumer confidence as well as political and policy uncertainty.

 

“It was a broad based recovery and not focused on one sector, and a first indication that things are beginning to turnaround for the better in the sector,” said Elize Kruger at NKC African Economics.

 

“However, there are still many headwinds like higher fuel prices, although they have come down now in December, which could contribute to a better environment,” Kruger said.

 

 

Famous Brand's UK burger chain shuts 14 struggling stores

JOHANNESBURG (Reuters) - South Africa’s Famous Brands said on Tuesday its UK-based unit Gourmet Burger Kitchen (GBK) has closed 14 out of 17 under-performing stores following the approval of a restructuring plan by creditors.

 

A string of British store groups have either gone out of business or announced plans to close shops this year, as they struggle with subdued consumer spending, rising labour costs, higher business property taxes and growing online competition.

 

The closures, part of a so-called Company Voluntary Arrangement (CVA) restructuring, allow the business to avoid insolvency or administration.

 

“While the other three sites have improved their performance, they remain under review, pending further action,” the firm said in a statement.

 

The South African firm bought GBK in 2016 but its contribution to group profitability has been hampered by pressure on consumer spending as well as factors ranging from higher property rates, increased input costs and an oversupply of restaurants..

 

($1 = 0.7857 pounds)

 

($1 = 14.1565 rand)

 

 

 

Botswana’s Mowana copper mine suspends operations over working capital

GABORONE (Reuters) - Mowana Mine, Botswana’s only operating copper mine, has suspended operations due to working capital constraints which has seen the company fail to pay salaries and suppliers, it said on Tuesday.

 

Mowana had a conditional $4 million working capital facility from Fujax Minerals and Energy Limited, from which it had drawn down $1 million. However Mowana and Fujax could not agree over collateral when the mining firm wanted to drawdown the rest of the facility, the company had said in a previous statement. “We thought it would only be fair to suspend operations while we try and explore other ways of securing the funding. Our hope is that the situation will be resolved soon and we can be able to restart operations,” Mowana’s general manager, Dominic Doherty, said.

 

Mowana Mine, which has a production capacity of 12,000 tonnes per annum, is 60 percent owned by AIM listed Cradle Arc. Cradle Arc reopened Mowana in 2017 after the mine went into liquidation in 2015. Copper prices on the international market have been recovering but Mowana mine, which employs 411 workers, has failed to capitalise on the gains due to equipment breakdowns. In October 2018, the mine produced 140 tonnes of copper compared to management’s original forecast of 392 tonnes as production was impeded by production stoppages. Botswana, Africa’s largest diamond producer, only has Mowana as its sole copper producer after the government owned BCL mine went into liquidation in 2016 sending over 5,000 workers home.

 

 

Somalia's GDP growth seen expanding to 3.1 pct in 2018 - IMF

NAIROBI (Reuters) - Somalia’s economic growth is expected to pick up in 2018 as it recovers from drought that had reduced farming output, the International Monetary Fund said on Tuesday.

 

It said it projected gross domestic product at 3.1 percent this year from 2.3 percent in 2017. Somalia exports bananas and also produces sorghum.

 

“Economic activity in 2018 is recovering from the 2016–17 drought. A favourable rainy season is supporting the economic recovery, particularly in the agricultural and livestock sectors; this is leading to a decline in food prices,” the fund said in a statement.

 

The IMF expects inflation to reach 3.5 percent this year, down from 5.5 percent in 2016.

 

Somalia has been in turmoil since 1991, when clan-based warlords overthrew dictator Siad Barre and then turned on each other. Over the past decade it has also been hit by an insurgency waged by al Qaeda-linked al Shabaab, as well as famine and maritime piracy.

 

 

Liquid Telecom gets $180 million from UK for pan-African fibre network

JOHANNESBURG (Reuters) - African fibre company Liquid Telecom has won a $180 million investment from British development finance agency CDC Group, which the firm said it will use to deliver high-speed broadband further into central and western Africa.

 

The Mauritius-based, privately owned firm said in a statement on Tuesday that the money will allow it to accelerate the expansion of its pan-African fibre network, which it says is already the largest on the continent, stretching from Cape Town at the southernmost tip of South Africa to Cairo in Egypt.

 

Nic Rudnick, Liquid Telecom’s CEO, said this will bring a fast and reliable connection and cloud services to communities and businesses in some of the most remote parts of Africa.

 

“Once completed, it will bring significant social and economic benefits - from providing access to online educational resources to supporting national economies, creating more jobs and driving the adoption of new technologies,” he said.

 

Africa currently has the lowest rates of fixed and mobile broadband subscription penetration in the world, at 0.6 per 100 inhabitants and 29.7 per 100 inhabitants respectively, according to data published last week by the United Nation’s International Telecommunication Union.

 

That compares to 31.3 fixed broadband subscriptions per 100 inhabitants and 93.6 mobile subscriptions per 100 inhabitants in Europe, leaving Africa with some way to go before it enjoys the same benefits from the digital economy.

 

“Digital infrastructure is still a major problem for Africa’s governments, people and it’s businesses,” said Nick O’Donohoe, CEO of the CDC Group, adding that quality internet is central to the continent’s development and economic growth.

 

 

Miner Anglo American sees higher production between 2018 and 2021

(Reuters) - Miner Anglo American Plc expects an incremental rise in production between 2018 and 2021 and costs to fall, its chief executive officer said on Tuesday.

 

Chief Executive Officer Mark Cutifani said the company, which has mining operations in Southern Africa, North and South America and Australia, expects 2018 production to be 2 percent higher than its previous forecast.

 

The miner sees a 3 percent rise in production in 2019 and a further 5 percent boost in both 2020 and 2021.

 

 

Tunisia central bank holds key interest rate at 6.75 pct

TUNIS (Reuters) - Tunisia’s central bank kept its key interest rate unchanged at 6.75 percent on Tuesday.

 

Inflation stayed at 7.4 percent in November, its third month in a row at that figure, official data showed. It fell from 7.5 percent in August and 7.8 percent in June.

 

In May, the central bank raised its key interest rate by 100 basis points to 6.75 percent in a bid to tackle inflation - at the time the second hike in three months

 

 

 

South Africa needs to bail out Eskom, says former Eskom adviser Rothschild

JOHANNESBURG (Reuters) - The South African government needs to “bite the bullet” and bail out struggling state-run power firm Eskom, which has asked for 100 billion rand ($7 billion) in government support, the chief executive of Rothschild & Co in South Africa told Reuters.

 

Rothschild advised Eskom in 2008 when it last received a major cash injection from government. At the time, Eskom sought 115 billion rand, but was granted a 60 billion rand loan which was later converted into equity.

 

Eskom has implemented controlled power cuts for much of the past week, which could erode support for the ruling African National Congress at next year’s national election.

 

Opinion is divided on whether Eskom, which provides more than 90 percent of South Africa’s power but was embroiled in corruption scandals under its previous management, should be bailed out again.

 

Rothschild’s Martin Kingston said in an interview that recapitalising Eskom could cost the country its last investment grade credit rating but that there was “no other obvious solution” if Eskom was to survive.

 

“The government knows that putting money into Eskom is going to exacerbate a downgrade scenario. But I think it is going to have to bite that bullet,” Kingston said. “The level of debt on Eskom’s balance sheet is completely unsustainable.”

 

Eskom’s debt has ballooned from around 106 billion rand to more than 419 billion rand over the past decade, while electricity sales have fallen.

 

Eskom executives told investors on a roadshow last week they wanted the state to take on 100 billion rand of the company’s debt. But Finance Minister Tito Mboweni is yet to approve the proposal and has said the state cannot afford to continue “pouring money” into loss-making state firms. [nL8N1YA2BV]

 

President Cyril Ramaphosa has made reforming Eskom a priority since taking office in February, but the scale of its financial difficulties has made progress slow.

 

Kingston said the government had kicked the can down the road by not providing Eskom with more funds in 2008 and that restructuring the utility could take three to five years.

 

($1 = 14.1565 rand)

 

 

 

France 'Gilets Jaunes': Spending cuts to fund Macron concessions

Measures to defuse France's yellow-vest protests will cost €10bn (£9bn; $11bn), says Finance Minister Bruno Le Maire.

 

That money will be offset by cuts in other government spending, he says.

 

Mr Le Maire, speaking a day after President Emmanuel Macron outlined the changes on TV, said planned reforms remained on course despite the concessions to protesters.

 

France would still honour deficit-to-GDP targets set by the EU, he told British and American journalists.

 

"France's attractiveness (for investors) is at stake. That is why it is so important to maintain the path of reform," he said.

 

"We want to stick to our European commitments. We will do our best to reduce the level of public spending and be as close as possible to 3% in 2019."

 

Italy, under pressure from Brussels to cut its budget, has already warned the European Commission not to give France any special favours.

 

Mr Macron announced four new measures on Monday evening aimed at buying off protesters, whose four-week movement has created the biggest crisis of his presidency.

 

An increase in a government bonus scheme for the low-paid, so that those on the minimum wage earn €100 euros more a month

An end to taxes and charges on overtime

Removal of a surcharge on most pensions

Encouraging businesses to make a tax-free bonus to staff

Macron concessions divide protest leaders

 

Who are the 'gilets jaunes'?

 

French press weigh Macron's 'risky gamble'

 

Where savings will be made

Mr Le Maire said the president had "found the right words and the right answer".

 

"If you see the polls, there is clear evidence that he's been understood by a large part of the population," he said.

 

"It was necessary to bring the social crisis to an end. It was having an impact on growth - on SMEs in particular. We had to get out the message that we understood."

 

With the extra spending expected to cost around 0.5% of GDP, government officials said savings would be found in state administration, aid to businesses, and in new taxes on digital multinationals such as Google, Apple, Facebook and Amazon, collectively labelled "Gafa".

 

France's government has said it will bring in a so-called "Gafa" tax on its own, if it cannot be agreed inside the EU.

 

The French government had budgeted for a 2.8% deficit-to-GDP ratio in 2019. Without any savings, the new measures would mean that ratio climbing to 3.3%.

 

To stay within EU stability rules, any increase above 3% would need to be offset by cuts.

 

However, government officials noted that the 2019 figures were skewed because of a one-off double pay-out to businesses, linked to the lowering of social charges. Without that exceptional expenditure, they say France would be well below the 3% target.

 

'Make work pay'

The minister said the yellow-vest protests were symptomatic of a Europe-wide malaise caused by low wages.

 

"The key thing is to make work pay. What we are seeing is a huge number of citizens who are in work but still failing to make ends meet. It is a problem of all our societies - the dignity of work.

 

"The critical thing is to find the right balance between a clear response to the fears of a large part of our population, and the need to keep on the path of reform."

 

Mr Le Maire insisted that reforms to the pension system and to unemployment benefit would go ahead as planned next year.

 

He defended President Macron's decision not to give in to a key demand of the protesters, to rescind the partial repeal of the wealth tax (ISF).

 

After his election last year, President Macron abolished a tax on high-earners' share dividends but kept it on investment in property. The aim was to encourage the rich to keep their money in France and invest in industry, but opponents see it as a symbol of divided society.

 

"If we want to re-industralise we need capital," said Mr Le Maire.

 

"Investors have come. Foreign investment has never been so high. We have indications that our fiscal policy has made the country more attractive."--bbc

 

 

 

 

India appoints new central bank governor

Shaktikanta Das has been named as the next governor of the Reserve Bank of India.

 

Mr Das, who has previously worked on the board of the central bank and as finance secretary, will serve a three-year term.

 

He was closely associated with the withdrawal of high-value bank notes in 2016, which caused a cash shortage.

 

His appointment follows the abrupt departure of governor Urjit Patel on Monday.

 

Mr Patel blamed "personal reasons" for his resignation, but it's thought he had come under increasing pressure from the government to support its polices.

 

Why is India at war with its central bank?

What ails the Indian economy?

It was a rare instance of a governor leaving his job midway through his term.

 

The government reportedly wanted the RBI to allow ailing state-owned banks, groaning under bad loans to industries, to resume lending to small businesses. It also wants the regulator to lower interest rates to inject much-needed liquidity into the economy.

 

Reports say the government also wants to access the RBI's surplus reserves in a bid to stimulate the economy with a big public spending spree to woo voters before the elections.

 

>From serving in the Tamil Nadu government to the power corridors of Delhi, Shaktikanta Das has held many posts including revenue secretary and fertiliser secretary.

 

But the experience that has counted the most in his portfolio is on the finance ministry's first floor as the economic affairs secretary.

 

Here, Das has worked closely with the central bank of India from 2015 to 2017. He understands the constant tussle between the RBI and the government.

 

No doubt his swift appointment will raise questions about the autonomy of the central bank.

 

Mr Das's priority will now be to restore the central bank's credibility.

 

One of the moves that will be watched by investors will be to see if he allows the government to have a higher share of the central bank's cash reserve.

 

India will vote in a general election in the first half of next year, with polls due by May.

 

India's $2.6 trillion (€2.3tn; £2tn) economy has recently been boosted by a strong performance in consumer spending and manufacturing, although the rupee has already fallen significantly against the surging dollar so far this year.

 

However, private investment remains slack and there are doubts on whether the economy will accelerate further.

 

Mr Das has much experience working on budgets, both for the government of Prime Minister Narendra Modi and the previous coalition government.

 

He retired as economic affairs secretary in May last year.--bbc

 

 

China to 'cut US car tariff to 15%'

China has reportedly proposed cutting tariffs on US-made cars to 15%, the same tax levied on car imports from other countries.

 

Bloomberg reported that China's cabinet will review the plans, which would undo the 40% import duty China imposed on US cars this summer.

 

The proposal, the timing of which remains uncertain, comes as the two countries restart trade talks.

 

President Donald Trump said earlier this month China would cut the tariffs.

 

However the claim has not yet been confirmed by Chinese officials, sowing confusion.

 

US-China trade war: Deal agreed to suspend new trade tariffs

The Trump and Xi deal: A temporary truce

Tuesday's reports in US media, which were based on anonymous sources including a car industry executive, said China outlined the plan on a recent telephone call between top trade negotiators from the two countries.

 

Bloomberg, which cited "people familiar with the matter", said the step was not finalised and could still change.

 

The office of the US Trade Representative, which is leading the discussions, did not respond to a BBC request for comment.

 

In a tweet, Mr Trump said the two sides were having "very productive conversations".

 

China's commerce ministry confirmed that the two sides had spoken. In a statement it said the conversation concerned "pushing forward the timetable and road map for the next stage of economic and trade consultations work."

 

Tesla, a US electric car-maker, has said its sales have been hurt by Chinese tariffs

Argentina meeting

The back-and-forth is the latest in a trade tow triggered by US claims that China engages in "unfair" trade practices, such as theft of intellectual property.

 

The dispute has prompted the US and China to impose new tariffs on billions of dollars worth of annual trade this year, measures that have contributed to economic worries in both countries.

 

The two sides, led by Mr Trump and President Xi Jinping, recently met in Argentina, where they agreed to a 90-day halt to any new tariffs.

 

US officials later said they wanted to see China move to reduce the car tariffs "immediately" as a sign that negotiations would proceed in good faith.

 

Analysts remain sceptical that the two sides will be able to reach a resolution of the underlying issues by 1 March.

 

Those doubts increased after the recent arrest of a high-ranking Huawei official in Canada at the request of the US, which worsened relations between the two countries.

 

Deja vu?

White House officials have maintained that the two matters are separate, but apparent agreements have faltered before.

 

In May, after talks in Washington, the US agreed to hold off on tariff threats, while China said it would reduce the import duty on foreign cars from 25% to 15%.

 

However that deal fell apart within weeks, after Mr Trump decided to move ahead with tariffs.

 

In retaliation, China raised the duty on US car imports to 40%, though it proceeded with the lower rate on imports from other countries.==bbc

 

 

 

Is the US heading for a recession?

Recessions are painful. Shrinking output tends to mean huge job losses, stagnant incomes and widespread misery.

 

And when that recession is in the world's largest economy, it's a major headache for its trading partners, not least the UK which sells 30% of its exports to the US.

 

Investors are increasingly concerned there's an American recession brewing.

 

Of course, they, and also economists, can get it wrong. But is there a sure-fire way of predicting recessions?

 

Government bond markets may be one the most accurate form of financial tea leaves.

 

A central bank study in the US found that the bond markets had successfully foreshadowed all five US recessions since 1955.

 

Those bonds, known as Treasuries in the US, are issued as a form of borrowing by governments, to fund spending.

 

They come with different lengths of maturity - and offer investors a rate of return, paid out in regular instalments.

 

That rate is a fixed proportion of the ultimate value of the bond. As bonds can be freely traded, their prices change.

 

If demand is high, the price rises, and the bond's rate of return relative to the market price, or its yield, falls. Conversely, a lower price means a rising yield.

 

Healthy clip

What influences the price of bonds? Their relative attractiveness compared to other investments (if the yield is high and so price low, buyers are likely to be lured in) and also, expectations of further interest rate movements.

 

What does this have to do with a recession? Analysts monitor the yields of bonds across the range of maturities, right up to 30 years to plot the yield curve.

 

The lower the yield, the lower the expected interest rate, the worse the economy is expected to be performing.

 

Bonds with a longer maturity would be expected to have a higher return anyway, to compensate holders for inflation and a longer holding period.

 

Typically, when the outlook is for activity to expand at a healthy clip, the yield curve will slope upwards, implying interest rates on an upward trend.

 

But if the yield curve "inverts" - normally meaning the yield on a 10-year bond is below that of 2-year bond, it serves as an economic health warning.

 

But how good are these curves for predicting recessions?

 

Reliable indicator

The bond markets were dependable signals of all the recessions in the US since 1955.

 

But in the mid-1960s, the inversion of the Treasuries yield curve was followed by a slowing in activity rather than an outright contraction.

 

So it's not foolproof but it's probably the most reliable indicator around

 

What the yield curve doesn't tell us is when the US economy could go into reverse.

 

Over the last 60 years or so, recessions have begun from 9 to 24 months after a yield curve inverts. At present, the unemployment rate is a very modest 3.7%, while the economy continues to grow apace. But a turning point may not be far off.

 

What's more, predictions drawn from yield curves may be self-fulfilling.

 

Much as consumers react to warnings about tough times by reining in spending, banks tend to become more cautious about lending when they notice the yield curve inverting.

 

Less credit swilling around- in the form of mortgages, car finance, cards or corporate loans - equals less spending to fuel growth.

 

The warning from the bond markets should be taken seriously - and not just by those in the markets.

 

Capital Economics warns that there is 30% chance of the US entering recession within 18 months: just in time for the run-up to the next US presidential election.--bbc

 

 

 

Meng Wanzhou: Trump could intervene in case of Huawei executive

Donald Trump says he could intervene in the case of Huawei executive Meng Wanzhou if it helps to avoid a further decline in US relations with China.

 

"Whatever's good for this country, I would do," the US president said.

 

Ms Meng, the chief financial officer of the Chinese telecoms giant, was granted bail on Tuesday by a Canadian court.

 

She was arrested on 1 December and could be extradited to the US to face fraud charges linked to the alleged violation of sanctions on Iran.

 

Ms Meng, 46, denies any wrongdoing and has said she will contest the allegations.

 

She is the daughter of Huawei's founder and her detention, which comes amid an increasingly acrimonious trade dispute between Washington and Beijing, has angered China and soured its relations with both Canada and the US.

 

Life of Huawei's high-flying heiress

What's going on with Huawei?

In an interview with Reuters news agency on Tuesday, Mr Trump said he would intervene in the US Justice Department's case against Ms Meng if it would serve national security interests or help achieve a trade deal with China.

 

"If I think it's good for what will be certainly the largest trade deal ever made - which is a very important thing - what's good for national security, I would certainly intervene if I thought it was necessary," he said.

 

What happened in the courtroom?

Justice William Ehrcke in Vancouver set bail for Ms Meng at C$10m (£6m; $7.4m).

 

Of that, C$7m must be provided in cash with C$3m in collateral.

 

The judge said that she would be under surveillance 24 hours a day and must wear an electronic ankle tag. She will be unable to go out between 2300 and 0600 and must surrender all passports and travel documents.

 

In the three-day bail hearing in Vancouver, Ms Meng's lawyers sought to provide guarantees that she would not pose a flight risk if released. The application was opposed by Canadian prosecutors.

 

US prosecutors say Ms Meng used a Huawei subsidiary called Skycom to evade sanctions on Iran between 2009 and 2014. They allege she had publicly misrepresented Skycom as being a separate company from Huawei. It is also alleged she deceived banks about the true relationship between the two companies.

 

Applause broke out in the courtroom when Justice Ehrcke granted bail. Ms Meng cried and hugged her lawyers.

 

The judge ordered her to reappear in court on 6 February.

 

After the ruling, Huawei issued a statement, saying: "We have every confidence that the Canadian and US legal systems will reach a just conclusion."

 

How has China reacted to Ms Meng's arrest?

China, which insists that Ms Meng has not violated any laws, had threatened severe consequences unless Canada released the Huawei executive.

 

Vice Foreign Minister Le Yucheng earlier summoned both the US and Canadian ambassadors and lodged a "strong protest" urging her release.

 

The ministry described Ms Meng's arrest as "extremely nasty".

 

Separately on Tuesday, it emerged that a Canadian former diplomat had been detained in China.

 

Michael Kovrig's current employer, the International Crisis Group, said it was working for his prompt release. There has been no official word from China about his whereabouts.

 

Prime Minister Justin Trudeau said Canada was in direct contact with Chinese authorities concerning the case.

 

Why Huawei matters in five charts

Mr Kovrig previously worked as a diplomat in Beijing, Hong Kong and at the UN in New York.

 

Canadian officials said there was no "explicit indication" of any link between Mr Kovrig's reported detention and the arrest of Ms Meng.

 

Who is Meng Wanzhou?

Meng Wanzhou joined Huawei as early as 1993, when she began a career at her father's company as a receptionist.

 

After she graduated with a master's degree in accountancy from the Huazhong University of Science and Technology in 1999, she joined the finance department of Huawei.

 

She became the company's chief finance officer in 2011 and was promoted to vice-chair a few months before her arrest.

 

Ms Meng's links to her father, Ren Zhengfei, were not public knowledge until a few years ago.

 

In a practice highly unusual in Chinese tradition, she adopted her family name not from her father but her mother, Meng Jun, who was Mr Ren's first wife.--bbc

 

 


 

 


 

INVESTORS DIARY 2018

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 

 


Cassava 

shares list on the ZSE

 

11/12/2018

 


 

Unity Day

 

22/12/2018

 


 

Christmas Day

 

25/12/2018

 


 

Boxing Day

 

26/12/2018

 


 

New Years’ Day

 

01/01/2019

 


 

 

 

 

 


 

 

 

 

 


 

 

 

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of Faith Capital (Pvt) Ltd for general information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities. The information contained in this report has been compiled from sources believed to be reliable, but no representation or warranty is made or guarantee given as to its accuracy or completeness. All opinions expressed and recommendations made are subject to change without notice. Securities or financial instruments mentioned herein may not be suitable for all investors. Securities of emerging and mid-size growth companies typically involve a higher degree of risk and more volatility than the securities of more established companies. Neither Faith Capital nor any other member of Bulls ‘n Bears nor any other person, accepts any liability whatsoever for any loss howsoever arising from any use of this report or its contents or otherwise arising in connection therewith. Recipients of this report shall be solely responsible for making their own independent investigation into the business, financial condition and future prospects of any companies referred to in this report. Other  Indices quoted herein are for guideline purposes only and sourced from third parties.

 


 

 


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Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:       <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:         <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AFQjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:            <http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:         @bullsbears2010

LinkedIn:       Bulls n Bears Zimbabwe

Facebook:      <http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimbabwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA> www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

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